Small Auto Loans – Partial Financing of Car and Other Vehicles

Most of the people tend to go for zero percent initial deposit. If that is not possible, they look for deals containing minimum upfront payment! Though this saves you money in the beginning, in the long run you end up paying more interest as the amount of loan is high. On the contrary, availing small auto loans help you save on the overall interest.

How small can the Small Auto Loans be?

This depends on the amount you can pay as the upfront payment. In most of the cases, people pay from 20 to 40 per cent of the vehicle’s total value in the beginning and get the rest financed. In very rare cases, people manage to pay off up to 60 per cent of the vehicle’s value. The thing is the higher upfront payment you make, the less is the amount you take as loan. These loans are a smart choice if you can afford to make partial payment of the total cost of the vehicle.

Advantages

If you pay an upfront payment of a considerable percentage of the auto cost, the loan you avail to cover the rest of the cost is small. A section of people often save money to make maximum down payment. They then go for small auto loans to cover the rest of te cost. This in turn reduces the overall interest you pay on the loan.

Advantages of Buying a Car from Associates

Many other money lenders have connections with the car dealers or vice-versa. If you find a good vehicle with such an associate, you can save further. Under this kind of partnerships, you get some time to arrange the down payment. Very often, the vehicle you selected is held for you up to 30 days before it is put on sale again. If you manage to arrange the money in between, the car is yours. Also, under such associations, you get some free gifts such as car accessories.

How do I Apply for Small Auto Loans?

The process of applying is same as any other loan in the US. The only difference is that you can apply online. You need to fill in the form specifying the amount you will pay and the amount you wish to avail as small auto loans. You may also attach the quotation for the vehicle from the dealer if the money lender asks you. In most cases, the money is transferred to your account. Others transfer the money directly to the car-dealer.

Share:

About the Author

Carney Alden

Carney Alden is a Masters in Accounting and Financial Management from Lancaster University Management School. He provide useful advice... (show bio)